Company Overview
| Company Name |
SILVERCREST ASSET MANAGEMENT GROUP INC. |
| Company Address |
1330 AVENUE OF THE AMERICAS
38TH FLOOR
New York, NY 10019 |
| Company Phone |
212-649-0600 |
| Company Website |
www.silvercrestgroup.com |
| CEO |
G. Moffett Cochran |
| Employees (as of 6/30/2012) |
87 |
| State of Inc |
DE |
| Fiscal Year End |
12/31 |
| Status |
Withdrawn (9/18/2012) |
| Proposed Symbol |
-- |
| Exchange |
Nasdaq National Market |
| Share Price |
11.00-13.00 |
| Shares Offered |
4,616,955 |
| Offer Amount |
$69,023,474.00 |
| Total Expenses |
$2,296,497.00 |
| Shares Over Alloted |
692,543 |
| Shareholder Shares Offered |
-- |
| Shares Outstanding |
4,616,965 |
| Lockup Period (days) |
180 |
| Lockup Expiration |
-- |
| Quiet Period Expiration |
-- |
| CIK |
0001549966 |
We estimate that the net proceeds from the sale of shares of our Class A common
stock by us in this offering will be approximately $49.5 million (or
approximately $57.3 million if the underwriters exercise in full their option
to purchase additional shares), based on an assumed initial public offering
price of $12.00 per share (the midpoint of the price range set forth on the
cover of this prospectus), in each case after deducting assumed underwriting
discounts and commissions and estimated offering expenses payable by us.
We intend to use approximately $38.1 million of the net proceeds from this
offering to purchase an aggregate of 3,366,955 Class B units of Silvercrest
L.P. from existing limited partners and will not retain any of these proceeds.
The purchase price for the Class B units will be determined by the public
offering price of our Class A common stock in this offering less the per share
amount of offering expenses incurred by us. We intend to use the remaining net
proceeds of this offering, including any proceeds from the exercise of the
underwriters’ option to purchase additional shares, to purchase additional
Class A units from Silvercrest L.P. and Silvercrest L.P. will use such proceeds
for general corporate purposes, which may include business operations,
investments in our business and new investment strategies and strategic
acquisitions for which no targets have been identified.
A $1.00 increase (decrease) in the assumed initial public offering price of
$12.00 per share of our Class A common stock would increase (decrease) the
amount of net proceeds to us from this offering available to purchase Class B
units from our existing limited partners by approximately $4.6 million, and,
as a result, the amount of proceeds available to us for general corporate
purposes by approximately $4.6 million, assuming the number of shares of our
Class A common stock offered by us, as set forth on the cover page of this
prospectus, remains the same, and after deducting estimated underwriting
discounts and commissions and estimated offering expenses payable by us.
The wealth management industry is highly competitive and is comprised of many
players. We compete directly with some of the largest financial service
companies, as well as some of the smallest. Substantially all of our new
business is gained from our success in taking market share from these firms.
We primarily compete on the basis of several factors, including our level of
service, the quality of our advice, independence, stability, performance
results, breadth of our capabilities and fees. In general, these competitors
fall into one of the following categories:
• Diversified Financial Institutions have divisions aimed at providing
wealth management solutions to the high net worth segment that are
usually staffed by brokers.
• Asset Management Firms offer proprietary institutional and retail asset
management services catering to the high net worth segment largely with
off-the-shelf products.
• Trust Companies combine fiduciary and investment services as well as
ancillary financial services.
• MFO/RIAs focus exclusively on the high net worth segment and are
frequently dominated by one or two families.
As a registered investment adviser that is not affiliated with other financial
firms, we are free from the conflicts associated with brokerage or investment
banking firms. In advising our clients on portfolio strategies, we are
motivated to meet our clients’ investment objectives—not to generate
commissions or placement fees—and to focus solely on providing excellent
service and investment performance.
We have the size and resources to compete with larger organizations, and unlike
many smaller firms, to provide our clients with fully customized, full-service
wealth management and integrated family office solutions. While many
competitors outsource investment management, we have chosen to compete with
excellent proprietary investment capabilities coupled with a focused array of
complementary non-proprietary capabilities offered by unaffiliated firms. This
combination enables us to compete for and win the business of wealthy
investors. We believe this is a key to our past and future success.
Company Description
We are a premier, full-service wealth management firm focused on providing
financial advisory and related family office services to ultra-high net worth
individuals and institutional investors. In addition to a wide range of
investment capabilities, we offer a full suite of complementary and
customized
family office services for families seeking comprehensive oversight of their
financial affairs. As of June 30, 2012, our assets under management were $10.7
billion, which we believe makes us the largest investment adviser in the United
States that is focused on high net worth clients and is principally owned by
its employees. Our clients are among the wealthiest and most sophisticated in
the world.
We were founded ten years ago on the premise that if we staffed and organized
our business to deliver a combination of excellent investment performance and
high-touch client service, we would quickly differentiate our business from a
crowded field of firms nominally in the wealth management business. We seek to
attract and serve a base of individuals and families with $10 million or more
of investable assets, and we believe we are particularly well-positioned to
offer comprehensive investment and family office service solutions to families
with over $25 million of investable assets. As of June 30, 2012, our top 375
client relationships had an average size of $28 million and represented
approximately 98% of our assets under management. Our top 50 relationships
averaged $151 million in size as of June 30, 2012.
We have grown during a time of extraordinary financial turmoil during which the
value of a full-service, independent, client-focused firm has become ever-more
apparent. Our growth and success at attracting ultra-high net worth clients,
primarily by taking market share from our competitors, validates our original
premise. Our organic growth has been complemented by selective hiring and by
four successfully completed acquisitions, which have expanded not only our
assets under management, but also our professional ranks, geographic footprint
and service capabilities. Our annual client retention rate has averaged 98%
since 2006 and, as shown below, the compound annual growth rate in assets under
management since inception is 49%.
Our clients engage us to advise them on traditional and alternative investment
strategies. Our clients receive a full menu of proprietary investment
capabilities together with a focused array of complementary non-proprietary
capabilities offered by unaffiliated firms selected by us. In addition to our
investment advisory capabilities, we also provide our clients with family
office services and related administrative services, which include financial
planning, tax planning and preparation, partnership accounting and fund
administration and consolidated wealth reporting.
Our fees for our investment advisory services, non-proprietary services and
family office and related administrative services are structured to align our
financial incentives with those of our clients to ensure they receive
unconflicted advice. The vast majority of our fees are for discretionary asset
management, and are based on the value of the assets we manage for our clients.
These fee revenues increase if our clients’ assets grow in value; these fee
revenues decrease if our clients’ assets decline in value. Unlike our
discretionary asset management fees, our fees for family office services and
related administrative services are generally not based on or correlated to
market values of our clients’ assets. For these services, we generally charge
our clients a negotiated fee based on the scope of work requested. These
services create strong client relationships and contribute meaningfully to our
record of client retention.
As of June 30, 2012, approximately 94% of our assets under management were held
for our individual clients and 6% for our institutional clients. Based on the
strong investment results of our proprietary equity strategies, we have begun
to attract a significant amount of institutional investor interest.
Our headquarters are located in New York City with additional offices in
Boston, Massachusetts and Charlottesville, Virginia. We believe our track
record of superior performance and our trusted reputation within the wealth
management industry and among our clients are solely attributable to the talent
and pedigree of our employees. As of June 30, 2012, we had 87 employees,
including 37 employee-owners. The 37 employee-owners of Silvercrest L.P. are
also referred to as our principals.
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We are a Delaware corporation and the address of our principal executive
offices is 1330 Avenue of the Americas, 38th Floor, New York, New York 10019.
Our telephone number is (212) 649-0600 and our website is
www.silvercrestgroup.com.
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